Meanwhile, American industrial production ended three straight months of growth with an unexpected decline. Output slipped -0.1% in May from April. Analysts had expected a +0.2% rise. That leaves year-on-year growth at just +1.6%. Production of consumer goods and business equipment led the numbers lower.

Going the other way, American consumer sentiment rose slightly in early June due to consumers' more favourable assessments of their current financial situation and more favourable views of current buying conditions for household durables.

In Canada, sales of existing homes hit a five year low in May. The data was a seven year low for May data. However, sales in Toronto rebounded, and in Vancouver they were also higher. National prices were down -6.4% year-on-year but are up a startling +11.5% in Vancouver led by townhouses and apartment prices.

In China, new data on electricity consumption shows it up more than +11% in May from the same month a year ago. Factory consumption was up less than +8%, with service sector and residential consumption rose at about twice that rate. China is just not adding generation capacity at anything like these rates, so the consumption growth is unsustainable.

In Argentina, their currency resumed its sharp downward fall caused by the sudden resignation of its central bank governor. The rapid appointment of a market-friendly figure did nothing the stop investors facing for the exits.

In Turkey, their currency slid an eye-popping -6%. There is a liquidity crunch there and 10-year bond yields rose toward the highest closing level on record, as traders braced for a deluge of debt sales this week.

In Indonesia, their central bank governor said another rate hike there is on the cards at their June meeting to protect their currency. Korea and Thailand are also now on the EM watchlist.

In Australia, Westpac identified a rogue adviser and dismissed him. Now the regulator is suing for hiring him in the first place. It is dangerous for banks no matter what they do to clean up their adviser networks.

And the Aussie bank Royal Commission fallout seems likely to clamp down on Mum & Dad loans, and cast a pall over most small business lending. Australia is facing a serious credit crunch.

The UST 10yr yield eased to 2.92% and down -2 bps . The Chinese 10yr is at 3.65% (up +2 bps) while the New Zealand equivalent is now at 2.94% and unchanged.

Gold has tanked, down -US$23/oz in New York to just US$1,279/oz.

Oil prices have also fell again by another -US$2.50/bbl and the US price is now on US$65/bbl. The Brent benchmark is now just over US$73/bbl.

The Kiwi dollar will start today at 69.5 USc. But on the cross rates we are firmer at 93.2 AUc, and 59.8 euro cents. That keeps the TWI-5 at 72.8 and still in its very tight June range.

Bitcoin is still at US$6,505 and the general level it has been at for the past six days.

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"But in an unexpected development - because as a reminder we already knew that the market had priced in an inversion in the short-end of the curve - something remarkable happened last week: the entire global bond curve just inverted for the first time since just before the financial crisis erupted.'https://www.zerohedge.com/news/2018-06-16/global-bond-curve-just-inverte...

Flick a message off to JPMorgan's Nikolaos Panigirtzoglou and ask him what the hell is he thinking.

"The US yield curve has started showing first signs of inversion. As shown in Figure 1 which depicts the forward curve for the 1-month OIS rate the US yield curve is currently slightly inverted after the two-year forward point."

"The answer is in the unequal weighing of US duration in the JPM global bond index: specifically, as Panigirtzoglou explains, the US has a much higher weight in the 1-3 year bucket, around 50%, than in the 7-10 year bucket, where it has a weight of only 25%.

This is because in terms of the relative stocks of government bonds globally, there are a lot more short-dated US government bonds relative to longer-dated ones as the US has lagged other countries in terms of the duration expansion trend that took place over the past ten years.

This is shown in Figure 3 which shows the average duration of various countries’ government bond indices over time. It is very clear that the US has failed to follow other countries in the past decade’s duration expansion race and as a result there are currently a lot more non-US government bonds in longer-dated buckets which are typically lower yielding than the US. And a lot more US government bonds in short-dated buckets which are typically higher yielding."

Hardly, China gets it's oil from the Middle East and Russia now that the US no longer needs to. This just strengthens their growing domination via one belt one road. Trump is a handy excuse to further their interests.

Only a fool, or someone with their snout in the trough, would wish for the status quo to continue. Time to clean out all the hangers on in the economy doing nothing and create some room for those doing something productive. Doing nothing includes all the wankers in real estate.

'And the Aussie bank Royal Commission fallout seems likely to clamp down on Mum & Dad loans, and cast a pall over most small business lending. Australia is facing a serious credit crunch'
Thanks for highlighting and stating the truth David, I wonder if any of the property perma-bulls have any idea what this might lead to?
'Oxygen masks will fall from the overhead compartment, please fit your own mask before attending to anyone else who attended the New Zealand Property Investors Seminar with you.'

The prices of houses sold by auction in Australia plummeted this weekend, not just in across total market volume but actual total market value. Compared to the previous weekend a year ago, the average sales transaction for Sydney was down over $600K.

Well, yeah, thats right, provided in the meantime you can make debt service and can stay solvent. Let’s we what happens in Aussie over the next 24 months, I think your theory is going to get tested to destruction

I also think this bank of mum and dad stuff is a bubble market phenomenon and there’s going to be some really tough and sad stories coming out of Aussie as their bubble deflates. yuk.